[Federal Register Volume 86, Number 57 (Friday, March 26, 2021)]
[Notices]
[Pages 16270-16274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-06338]


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SMALL BUSINESS ADMINISTRATION


Applications for New Awards; Shuttered Venue Operators Grants 
(SVOG)

AGENCY: U.S. Small Business Administration.

ACTION: Notice of funding opportunity.

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SUMMARY: The U.S. Small Business Administration (SBA) issues a notice 
inviting applications for new awards for fiscal year (FY) 2021 for 
SVOG, Catalog of Federal Domestic Assistance (CFDA) number 59.075. This 
notice relates to the approved information collection under OMB control 
number 4040-0004.

DATES: 
    Applications Available: April 8, 2021.
    Deadline for Transmittal of Applications: The SBA will receive and 
process applications on a rolling basis, and submission will remain 
available until funds become exhausted.
    Pre-application webinar information: The SBA held a pre-application 
meeting, via webinar, for prospective applicants on January 14, 2021, 
Eastern time. The webinar is available for viewing at https://www.youtube.com/watch?v=PdfQGb6z-gg.
    The SBA will hold a second webinar on March 30, 2021 and will make 
information available on the webinar at www.sba.gov/svogrant.

ADDRESSES: The SBA will only accept applications submitted 
electronically through the SBA's website via the following link: 
www.sba.gov/svogrant.

FOR FURTHER INFORMATION CONTACT: Barbara E. Carson, U.S. Small Business 
Administration, 409 Third Street SW, Washington, DC 20416. Telephone: 
(800) 659-2955. Email: [email protected].
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION:

Full Text of Announcement

I. Funding Opportunity Description

    Purpose of Program \1\: The Economic Aid to Hard-Hit Small 
Businesses, Nonprofits and Venues Act signed into law on December 27, 
2020 included $15 billion in grants to operators of shuttered venues, 
which the SBA's Office of Disaster Assistance will administer. On March 
11, 2021, the American Rescue Plan Act of 2021 (Pub. L. 117-2, title V, 
sec. 5005) was enacted; it provides an additional $1,249,500,000 in 
grants for these entities. Of this total grant funding, at least $2 
billion is reserved for applicants with up to 50 full-time employees. 
Grants of up to $10 million will be disbursed to eligible entities in 
accordance with requirements set forth in 2 CFR part 200, as 
applicable. This guidance explains the rules associated with the use of 
federal grant funds.
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    \1\ The terms in the text of this notice that are in italics are 
defined in the Definitions section.

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[[Page 16271]]

    Background: Under the SVOG Program, an eligible entity that was in 
operation on January 1, 2019 may qualify for grants equal to the lesser 
of an amount equal to 45% of its gross earned revenue or $10 million. 
Eligible entities that began operations after January 1, 2019, may 
qualify for grants equal to the lesser of the average monthly gross 
revenue for each full month the entity was in operation during 2019 
multiplied by 6 OR $10 million. The maximum award amount is $10 
million. No less than $2 billion of the total program is reserved for 
small employers who meet the eligibility requirements and have not more 
than 50 full-time employees.
    The SBA will receive and process awards on a rolling basis to 
ensure that those entities hardest hit by the COVID-19 pandemic are 
granted an opportunity to access this much-needed assistance.

Priorities

    First Priority: Applicants who lost 90% or more of their revenue 
between April 2020 and December 2020, due to the COVID-19 pandemic.
    Second Priority: Entities that lost 70% or more of their revenue 
between April 2020 and December 2020, due to the COVID-19 pandemic.
    Third Priority: Entities that suffered a 25% or greater revenue 
loss between any one quarter of 2019 and the corresponding quarter of 
2020.

Definitions

    Cover Charges means charges to encompass front door entrance fees, 
food or beverage minimums, or other similar charges required to gain 
admission to a venue, whether collected via ticket sales, addition to a 
tab, or direct payment.
    Covered Mortgage Obligation means a debt obligation that is an 
obligation of the borrower, including a related mortgage on real or 
personal property, and that was entered into before February 15, 2020.
    Covered Rent Obligation means rent obligated under a leasing 
agreement in force before February 15, 2020.
    Covered Utility Obligation means electricity, gas, water, 
transportation, telephone, or internet access expenses for which 
service began before February 15, 2020.
    Covered Worker Protection Expenditures means an operating or a 
capital expenditure to facilitate the adaptation of the business 
activities of an entity to comply with requirements established or 
guidance issued by the Department of Health and Human Services, the 
Centers for Disease Control, or the Occupational Safety and Health 
Administration, or any equivalent requirements established or guidance 
issued by a state or local government, during the period beginning on 
March 1, 2020 and ending on December 32, 2021.
    Eligible Person or Entity is a: Live venue operator or promoter, 
theatrical producer, or live performing arts organization operator, a 
relevant museum operator, a motion picture theatre operator, or a 
talent representative that meets the relevant facility and category 
requirements related to its entity type in addition to the following 
eligibility requirements:
    1. The eligible entity was fully operational (including in a pre-
opening, start-up capacity) as an eligible entity on February 29, 2020, 
and
    2. The eligible entity had gross earned revenue during the first, 
second, third, or fourth quarter in 2020 that demonstrates not less 
than a 25% reduction from the gross earned revenue of the eligible 
entity during the same quarter in 2019. Firms not in operation in 2019 
may qualify for an SVOG if their gross earned revenues for the second, 
third, or fourth quarter of 2020 demonstrate a reduction of not less 
than 25% from their gross earned revenue for the first quarter of 2020.
    3. As of the date of the grant under this section--
    a. the live venue operator or promoter, theatrical producer, or 
live performing arts organization operator is or intends to resume 
organizing, promoting, producing, managing, or hosting future live 
concerts, comedy shows, theatrical productions, or other performing 
arts events;
    b. the motion picture theatre operator is open or intends to reopen 
for the primary purpose of public exhibition of motion pictures;
    c. the relevant museum operator is open or intends to reopen; or
    d. the talent representative is representing or managing artists 
and entertainers.
    4. The venues at which the live venue operators or promoters, 
theatrical producers, or live performing arts organization operators 
stage events, or at which the artists and entertainers represented or 
managed by the talent representative perform, have the following 
characteristics:
    a. A defined performance and audience space, and
    b. Mixing equipment, a public address system, and a lighting rig.
    c. Engage 1 or more individuals to carry out at least 2 of the 
following roles:
    (1) A sound engineer;
    (2) A booker;
    (3) A promoter;
    (4) A stage manager;
    (5) Security personnel; or
    (6) A box office manager.
    d. Most performances and artists are paid fairly and do not play 
for free or solely for tips, except for fundraisers or similar 
charitable events.
    e. For a venue owned or operated by a nonprofit entity that 
produces free events, the events are produced and managed primarily by 
paid employees, not by volunteers.
    f. Performances are marketed through listings in printed or 
electronic publications, on websites, by mass email, or on social 
media.
    5. A motion picture theater or theaters operated by the motion 
picture theatre operator have the following characteristics:
    a. At least 1 auditorium that includes a motion picture screen and 
fixed audience seating.
    b. A projection booth or space containing not less than 1 motion 
picture projector.
    c. A paid ticket charge to attend exhibition of motion pictures.
    d. Motion picture exhibitions are marketed through showtime 
listings in printed or electronic publications, on websites, by mass 
mail, or on social media.
    6. The relevant museum (s) for which the relevant museum operator 
is seeking a grant under this section have the following 
characteristics:
    a. Serves as a relevant museum as its principal business activity.
    b. Uses indoor exhibition spaces that are a component of the 
principal business activity and which have been subjected to pandemic-
related occupancy restrictions.
    c. Uses at least 1 auditorium, theater, or performance or lecture 
hall with fixed audience seating and regular programming.
    Fixed Seating means seating that is permanently fixed to the floor 
or ground, or which is so heavy or cumbersome as to make removing it 
impractical. Where fixed seating is required for an auditorium or 
similar space, a majority of the seating provided in that space must 
meet the definition of fixed seating.
    Full-time employee means--
    1. any employee working not fewer than 30 hours per week shall be 
considered a full-time employee; and
    2. any employee working not fewer than 10 hours and fewer than 30 
hours per week shall be counted as one-half of a full-time employee.
    Live Venue Operator or Promoter, Theatrical Producer or Live 
Performing Arts Organization Operator

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    1. means--
    a. an individual or entity--
    (1) that, as a principal business activity, organizes, promotes, 
produces, manages, or hosts live concerts, comedy shows, theatrical 
productions, or other events by performing artists for which--
    (a) a cover charge through ticketing or front door entrance fee is 
applied; and
    (b) performers are paid in an amount that is based on a percentage 
of sales, a guarantee (in writing or standard contract), or another 
mutually-beneficial formal agreement, and (2) for which not less than 
70% of the earned revenue of the individual or entity is generated 
through, to the extent related to a live event cover described in 
subclause a(1) of this section, cover charges or ticket sales, 
production fees or production reimbursements, nonprofit educational 
initiatives, or the sale of event beverages, food, or merchandise; or
    b. an individual or entity that, as a principal business activity, 
makes available for purchase by the public an average of not less than 
60 days before the date of the event tickets to events--
    (1) described in subclause a(1) of this section; and
    (2) for which performers are paid in an amount that is based on a 
percentage of sales, a guarantee (in writing or standard contract), or 
another mutually beneficial formal agreement; and
    2. includes an individual or entity described in subparagraph 1 of 
this section that- a. operates for profit;
    b. is a nonprofit organization;
    c. is government-owned; or
    d. is a corporation, limited liability company, or partnership or 
operated as a sole proprietorship.
    Majority Owned or Controlled means that at least 51% of the 
ownership interests in an entity (regardless of its legal structure) 
are held by a single individual or entity.
    Motion Picture Theatre Operator means an individual or entity 
that--
    1. as the principal business activity of the individual or entity, 
owns or operates at least 1 place of public accommodation for the 
purpose of motion picture exhibition for a fee; and
    2. includes an individual or entity described in subparagraph 1 
that--
    a. operates for profit;
    b. is a nonprofit organization;
    c. is government-owned; or
    d. is a corporation, limited liability company, or partnership or 
operated as a sole proprietorship.
    Principal Business Activity is determined using a firm's primary 
industry under the SBA size regulations (13 CFR 121.107) to define 
``principal business activity.'' To determine a given firm's principal 
business activity, the SBA will consider the distribution of an 
entity's receipts, employees and costs of doing business among the 
different lines of business activity in which its business operations 
occurred for the most recently completed fiscal year. The SBA may also 
consider other factors, such as the distribution of patents, contract 
awards, and assets, as appropriate.
    Regular Programming means programming provided on an ongoing and 
near-continuous basis of an average of at least four times a month.
    Relevant Museum means a public or private nonprofit agency or 
institution organized on a permanent basis for essentially educational 
or aesthetic purposes, that utilizes a professional staff, owns or 
utilizes tangible objects, cares for the tangible objects, and exhibits 
the tangible objects to the public on a regular basis. Such term 
includes museums that have tangible and digital collections and 
includes aquariums, arboretums, botanical gardens, art museums, 
children's museums, general museums, historic houses and sites, history 
museums, nature centers, natural history and anthropology museums, 
planetariums, science and technology centers, specialized museums, and 
zoological parks.

Application Requirements

    Applications for SVOG funds must address the following application 
requirements and the application must include the following supporting 
documentation--
    1. Certification of Need and Assurance--All entities shall include 
an assurance that the entity was fully operational on February 29, 2020 
and that the funds will only be used for the allowable purposes 
established by law. This statement is required by statute and must 
include the following:
    a. If the entity is currently in operation, the entity will remain 
in operation after receipt of the funds; or
    b. If the entity is currently shuttered, the statement shall 
include the intent to reopen with an estimated date of reopening.
    2. 2019 Federal Tax Returns;
    3. 2020 Federal Tax Returns--Entities are required to submit 2020 
Federal tax returns with their applications. If an entity has not filed 
2020 Federal tax returns at the time of application, and if the entity 
is awarded an SVOG and the due date for the entity's 2020 tax returns 
has passed, the entity must submit 2020 Federal tax returns after the 
first disbursement. If an entity's 2020 tax returns are not yet due, 
the entity must provide 2018 and 2019 taxes at the time of application 
and 2020 taxes as soon as practicable after filing 2020 taxes.
    4. Employee List with Job Titles and Employee Status (Full or Part 
time);
    5. Quarterly Profit and Loss Statements for 2019 and 2020;
    6. Articles of Incorporation, Bylaws and DBA Certificate (if 
applicable);
    7. Income Statements for 2019 and 2020;
    8. Copy of most recent Audited Financial Statement (2019) or Single 
Audit (if applicable) or link to website where the report can be 
located;
    9. Tax Exempt Status Letter (applicable only for Non-profit 
entities);
    10. Listing of all Individuals Represented and Venues for which 
they have contracted to perform (applicable only for Talent 
Representatives);
    11. Examples of Contractual/Consultant Agreements with talent 
represented, and venues used and evidence of booking (This applies only 
for Talent Representatives);
    12. State or Local COVID Occupancy Restrictions (applicable only 
for Museum Operators);
    13. Floor Plan (and plan of grounds if outdoor space is used for 
the performance venue). The floor plan must demonstrate the location of 
the defined performance space. Applicants must provide the floor plan 
that is used for insurance purposes or local fire inspections. In the 
case of motion picture theatre operators, the floor plan must also 
identify the projection booth. (This applies only to Live Venue 
Operator or Promoter, Theatrical Producer, or Live Performing Arts 
Organization Operator (Excluding Freelancers); Motion Picture Theatre 
Operators; Relevant Museums);
    14. Evidence of Marketing (applicable only for Live Venue Operator 
or Promoter, Theatrical Producer, or Live Performing Arts Organization 
Operator (Excluding Freelancers); Motion Picture Theatre Operators; 
Relevant Museums) Entities that remain open must provide their most 
recent marketing materials. Those entities that closed due to the 
COVID-19 pandemic must provide the most recent marketing materials used 
prior to closing.
    15. Indirect Cost Rate Agreement from Cognizant Agency (if 
applicable). If the entity does not have a current negotiated indirect 
cost rate in place, the entity may negotiate a proposed indirect cost 
rate. If the entity has never had a negotiated cost rate agreement, the 
10% de minimis rate may be utilized, in accordance with the procedures 
set forth in 2 CFR 200.414. If the entity has an indirect cost rate 
agreement from a cognizant agency, a copy of that

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agreement must be included in the application.
    Assurances: All applicants must submit assurances through the 
application process. The assurances include the Standard 424 (b), SBA 
Form 1711--Certification Regarding Lobbying & Disclosure of Lobbying 
Activities, SBA Form 1623--Debarment and Suspension, a Drug-free 
Workplace Agreement, and certifications described in section 324 of 
division N of the Consolidated Appropriations Act, 2021 (Pub. L. 116-
260).
    Program Authority: Section 324 of division N of the Consolidated 
Appropriations Act, 2021 (Pub. L. 116-260).
    Applicable Regulations:
    1. The Office of Management and Budget Guidelines to Agencies on 
Governmentwide Debarment and Suspension (Nonprocurement) in 2 CFR part 
180, as adopted and amended as regulations of the Agency in 2 CFR part 
3485.
    2. The Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements for Federal Awards in 2 CFR part 200, as adopted and 
amended as regulations of the Agency in 2 CFR part 3474.

II. Award Information

    Type of Award: Grants.
    Estimated Available Funds: $15,000,000,000. Contingent upon the 
availability of funds and the quality of applications, the SBA may make 
supplemental awards in FY 2021.
    Estimated Range of Awards: $250,000--$10,000,000.
    Estimated Average Size of Awards: $1,000,000.
    Maximum Award: No grant shall exceed $10 million and the combined 
grants of an entity and its subsidiaries may not exceed $10 million. 
The SBA will grant Initial Phase awards either to:
    1. An eligible entity that was in operation on January 1, 2019, the 
lesser of an amount equal to 45% of their 2019 gross earned revenue; or
    2. An eligible entity that began operation after January 1, 2019, 
the lesser of the average monthly gross revenue for each full month the 
entity was in operation during 2019 multiplied by 6; or
    3. $10 million.
    Estimated Number of Awards: 15,000.
    Note: The SBA is not bound by any estimates in this notice.
    Limits to Initial Grants to Affiliates: Not more than 5 business 
entities of an eligible person or entity that would be considered 
affiliates under the affiliation rules of the Administration may 
receive a grant.
    Budget Period: Funding received under this grant may be used for 
allowable costs incurred during the period beginning on March 1, 2020 
and ending on December 31, 2021.

III. Eligibility Information

    1. Eligible Entity: An eligible person or entity is a live venue 
operator or promoter, theatrical producer, or live performing arts 
organization operator, a relevant museum operator, a motion picture 
theatre operator, or a talent representative that meets the criteria 
included in the definition of an eligible person or entity.
    2. Exclusions and Ineligible Entity: An entity is determined 
ineligible if it has any of the following characteristics:
    a. Is a publicly-traded corporation listed on a stock exchange.
    b. Receive more than 10% of gross revenue from Federal funding 
during 2019, excluding amounts received by the eligible entity under 
the CARES Act or the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.).
    c. Is not majority owned or controlled by an entity with all of the 
following characteristics:
    (1) Owning or operating eligible entities in more than 1 country;
    (2) Owning or operating eligible entities in more than 10 States; 
and
    (3) Employing more than 500 full-time employees as of February 29, 
2020.
    d. Where an eligible entity is owned by a State or a political 
subdivision of a State, it--
    (1) must function as the eligible entity; and
    (2) cannot include entities of the State or political subdivision 
other than the eligible entity.
    e. The entity cannot present live performance of a prurient or 
sexual nature and cannot derive more than 5% of its gross revenue, 
directly or indirectly, from the sale of products or services or the 
presentation of any depictions or displays that are of a prurient or 
sexual nature.
    3. Cost Sharing or Matching: This grant does not require cost 
sharing or matching.
    4. Subgrantees: A grantee under this program may not award 
subgrants.

IV. Application and Submission Instructions

    1. Application Submission Instructions: All applications for this 
grant will be submitted electronically via SBA's website. Please visit 
www.sba.gov/svogrant for information on how to submit an application.
    2. Intergovernmental Review: This program is not subject to 
Executive Order 12372 and the regulations in 34 CFR part 79.
    3. Funding Uses: Grantees under this program must only use the 
grant funds for the following--
    a. Payroll costs;
    b. Payments on any covered rent obligation;
    c. Any covered utility payment;
    d. Scheduled payments of interest or principal on any covered 
mortgage obligation (which shall not include any prepayment of 
principal on a covered mortgage obligation);
    e. Scheduled payments of interest or principal on any indebtedness 
or debt instrument (which shall not include any prepayment of 
principal) incurred in the ordinary course of business that is a 
liability of the eligible person or entity and was incurred prior to 
February 15, 2020;
    f. Covered worker protection expenditures;
    g. Payments made to independent contractors, as reported on Form-
1099 MISC, not to exceed a total of $100,000 in annual compensation for 
any individual employee of an independent contractor, and
    h. Other ordinary and necessary business expenses, including--
    (1) Maintenance expenses,
    (2) Administrative costs, including fees and licensing costs,
    (3) State and local taxes and fees,
    (4) Operating leases in effect as of February 15, 2020,
    (5) Payments required for insurance on any insurance policy, and
    (6) Advertising, production transportation, and capital 
expenditures related to producing a theatrical or live performing arts 
production, concert, exhibition, or comedy show, except that a grant 
under this section may not be used primarily for such expenditures.
    4. Funding Restrictions: An eligible person or entity may not use 
amounts received under a grant for the following purposes:
    (a) To purchase real estate;
    (b) For payments of interest or principal on loans originated after 
February 15, 2020;
    (c) To invest or re-lend funds;
    (d) For contributions or expenditures to, or on behalf of, any 
political party, party committee, or candidate for elective office; or
    (e) For any other use as may be prohibited by the Administrator.

V. Application Review Information

    1. Review and Selection Process: The SBA will review complete 
applications in the order in which it receives them based on the 
established priorities and the availability of funds. The SBA may

[[Page 16274]]

decline incomplete applications or applications failing to provide 
required documentation.
    2. Risk Assessment and Specific Conditions: Consistent with 2 CFR 
200.205, before awarding grants under this competition, the SBA 
conducts a review of the risks posed by applicants. Under 2 CFR 
3474.10, the Administrator may impose specific conditions and, in 
appropriate circumstances, high-risk conditions on a grant if the 
applicant or grantee is not financially stable; has a history of 
unsatisfactory performance; has a financial or other management system 
that does not meet the standards in 2 CFR part 200, subpart D; has not 
fulfilled the conditions of a prior grant; or is otherwise not 
responsible.
    3. Integrity and Performance System: If you are selected under this 
opportunity to receive an award that over the course of the project 
period may exceed the simplified acquisition threshold (currently 
$250,000), under 2 CFR 200.205(a)(2), we must make a judgment about 
your integrity, business ethics, and record of performance under 
Federal awards, that is, the risk posed by you as an applicant---before 
we make an award. In doing so, we must consider any information about 
you that is in the integrity and performance system (currently referred 
to as the Federal Awardee Performance and Integrity Information System 
(FAPIIS)), accessible through the System for Award Management. You may 
review and comment on any information about yourself that a Federal 
agency previously entered and that is currently in FAPIIS.
    Please note that, if the total value of your currently active 
grants, cooperative agreements, and procurement contracts from the 
Federal Government exceeds $10,000,000, the reporting requirements in 2 
CFR part 200, appendix XII, require you to report certain integrity 
information to FAPIIS semiannually. Please review the requirements in 2 
CFR part 200, appendix XII, if this grant plus all the other Federal 
funds you receive exceed $10,000,000.

VI. Award Administration Information

    1. Award Notices: If your application is successful, we will notify 
you via electronic correspondence containing a link to access an 
electronic version of your grant award notification.
    If your application is not evaluated or not selected for funding, 
we will notify you.
    2. Administrative and National Policy Requirements: If awarded 
funds under this grant, the recipient must agree to cooperate with all 
financial monitoring and audit reviews conducted by SBA, its agents, or 
contractors.
    3. Reporting:
    (a) If you apply for a grant under this competition, you must 
ensure that you have in place the necessary processes and systems to 
comply with the reporting requirements in 2 CFR part 170, should you 
receive funding under the opportunity. This does not apply if you have 
an exception under 2 CFR 170.110(b).
    (b) After using all the funds awarded to you, you must submit a 
final report, including financial information, as directed by the 
Administrator.
    4. Documentation--Additional documentation requirements that are 
consistent with the eligibility and other requirements under this NOFO, 
including requiring an eligible person or entity that receives a grant 
under this funding opportunity to retain records that document 
compliance with the requirements for grants under this program--
    (a) with respect to employment records, for the 4-year period 
following receipt of the grant; and
    (b) with respect to other records, for the 3-year period following 
receipt of the grant.

VII. Other Information

    Accessible Format: Individuals with disabilities can obtain this 
document and a copy of the application package in an accessible format 
(e.g., braille, large print, audiotape, or compact disc) by request to 
the program contact person listed under FOR FURTHER INFORMATION 
CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site, you can view this 
document, as well as all other documents of the SBA published in the 
Federal Register, in text or Portable Document Format (PDF). To use 
PDF, you must have Adobe Acrobat Reader, which is available for free at 
the site.
    You can also access documents of the SBA published in the Federal 
Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the SBA.

    Dated: March 23, 2021.
Barbara E. Carson,
Deputy Associate Administrator, Office of Disaster Assistance.
[FR Doc. 2021-06338 Filed 3-25-21; 8:45 am]
BILLING CODE 8026-03-P